I was given an old iMac G3 Lime (Rev. D 333MHz).
Here is a link regarding the Rev. D 333MHz iMac G3.
http://lowendmac.com/imacs/rev-d-imac-g3-333-mhz.html
I also understand that OS 9.2.2 is about as high of a level of OS I should install without having to uprade the CPU, RAM etc.
OS 9.2.2 is required before moving up to Mac OS X ... also required is a Firmware Update which you would find
here. You can go as high as Panther 10.3.9 on your iMac G3 and that's without needing any CPU bump. You would need to max out the RAM though and IIRC, you can install up to 512 mb.
I want to buy the OS on eBay, but I don't know much about the difference between REstore S/W versus Retail S/W versus install restore s/W.
What you need is a bootable Full Retail Software Install Disc/s. For OS 9, these will have a white label and a large orange 9. Don't buy anything that is an upgrade disc as these require there to already be an OS installed so make sure the discs you buy are fully bootable or in other words you can boot your iMac directly from this disc and proceed to install the OS.
For Mac OS X, don't buy any discs that have a gray label. The Full Retail versions have a black label with a large White X.
http://cgi.ebay.com.au/MAC-OS-9-2-2-CD-UNIVERSAL_W0QQitemZ120297706107QQihZ002QQcategoryZ154197QQssPageNameZWDVWQQrdZ1QQcmdZViewItem
The above link points to an OS 9 disc which claims to be Universal but then has OEM in the blurb and has a gray label which clearly distinguishes it as a Software Restore Disc for a specific model only so you'd steer clear of this type of disc. Even the icon
(large orange 9) in the image next to the item name is misleading as it leads you to think it's a Retail Version.
http://cgi.ebay.com.au/Mac-OS-9-CD-UNIVERSAL-in-BOX-NEU-OVP_W0QQitemZ120298054871QQihZ002QQcategoryZ154197QQssPageNameZWDVWQQrdZ1QQcmdZViewItem
The image showing the disc label at the above link is the correct type of disc you need but even in that ad, unless you speak German, it's difficult to determine that the disc on offer is fully bootable and not an upgrade version. I would only buy if I knew for sure.
Here is a link for you re: OS 9:
OS 9 Installation & Updates
Scroll down the page until you come to the relevant section.
Hope this helps.
.